Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Utilize the information given below for Moonstar Villas, Inc. for 2008 and 2007 to reply the problems that are given below. Moonstar Villas uses the straight-line depreciation method.

                                                  2008          2007

Property, Plant, and Equipment     $250,000    $190,000
Accumulated Depreciation             100,000       85,000
Depreciation Expense                     62,500      47,500
Net Sales                                 1,000,000    900,000
Total Assets                               625,000     475,000

1) Find out the average life of Moonstar Villas' property, plant, and equipment rounded to one decimal place using the data of 2008.

A. 1.61 years
B. 2.50 years
C. 4.00 years
D. 10.00 years

2) Find outhe average age of Moonstar Villas' property, plant, and equipment using the data of 2008.

A.1.61 years
B.2.50 years
C.4.00 years
D.10.00 years

3) Find out the asset turnover ratio for Moonstar Villas for 2008.

A.1.60 times
B.1.82 times
C.4.55 times
D.4.00 times

4) In the year, Moonstar Villas sold few equipment which had the original cost of $57,500. Which statement is true concerning transactions which may have occurred during the period?

A. Royal purchased extra equipment during the year
B. Selling price of the equipment sold was reported with net sales
C. The equipment which was sold had a book value of $12,500
D. The equipment had not been reported with Property, Plant and Equipment

5) If a company's asset turnover ratio decreased from 2007 to 2008, which of the following conclusions can be made?

A. The company was well-organized in 2008 in using its assets to produce profits
B. The company produced fewer sales in 2008 for each dollar invested in assets
C. The company was less profitable in 2007
D. The company is overinvested in assets in 2008

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99897

Have any Question? 


Related Questions in Accounting Basics

Course project portfolio of international accounting

Course Project: Portfolio of International Accounting Findings Throughout your course work, you explored topics such as cost and revaluation models of accounting, revenue recognition, assets and liabilities, translation ...

Accounting assignmentgrant film products wishes to expand

Accounting Assignment Grant Film Products wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been ...

Assignmentas my town is very small and i was unable to find

Assignment As my town is very small and I was unable to find the CAFR, but I was able to find reports for my nearest city (and the one I work in), Concord, NH, for the fiscal year ending June 30, 2015. One thing that I f ...

Assignment expected value and consumer choicesexpected

Assignment: Expected Value and Consumer Choices Expected Value and Consumer Choices Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these disc ...

Assignemntpart 11the type of business organization that can

Assignemnt Part 1 1. The type of business organization that can continue indefinitely is known as a: a. sole proprietorship. b. partnership. c. corporation. d. None of the above answers are correct. 2. The purpose of the ...

Business assignmentthe comany i have choosen is upsresearch

Business Assignment The comany i have choosen is UPS. Research a company that interests you from the Fortune 500. (A list will be provided). Analyze what they do. What business are they in? What industry? How have they b ...

Current designsas a service to its customers current

CURRENT DESIGNS As a service to its customers, Current Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, C ...

1 mrs beach wants to invest a lump sum of money today to

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%? b. What would Mr ...

Course project a financial statement analysisa comparative

Course Project: A Financial Statement Analysis A Comparative Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the financial statements for Nike, Inc. for the fiscal year ending 2014. First, select 2014 ...

Assignmentyour accounting firm has been asked to recommend

Assignment Your accounting firm has been asked to recommend an online accounting system for several businesses who are looking to automate their accounting. Research five online accounting systems (including QuickBooks O ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro